Synlait Milk’s share price fell sharply after the company said the problems of its biggest customer, a2 Milk, will lead to its net profit in the 2021 financial year being about half that of the previous year. Synlait stock fell as low as $4.50 on the news before staging a big comeback, ending steady at $4.88. Likewise, a2 Milk recovered to be just 11:04 after hitting $10.46 at one stage. A2 Milk, a cornerstone 20 per cent shareholder of Synlait, announced last week its sales would be affected by Covid-19 disruption of the important daigou trading channel in Australia, used by international students and travellers. Synlait has in recent years been actively trying to diversify itself away from a2 Milk to mitigate impacts such as this. There has been no disruption to manufacturing or demand for Synlait’s ingredient, lactoferrin, or consumer-goods businesses, and Synlait remains confident it can deliver on its medium- to long-term objectives.